Expobank issued a loan to an entrepreneur that uses WAVES as collateral. A first reported crypto-backed personal loan in Russia after the government passed its first law, which forbids the practice of cryptocurrency payments.
A Russian bank has become the first lender in the country to issue a loan secured by cryptocurrency tokens. Lender Expobank said the deal was “precedent-setting for both the banking and legal communities”https://t.co/wpryQou30l— The Moscow Times (@MoscowTimes) August 19, 2020
The first client to negotiate and secure a token-collateralized loan at Barclays' former Russian subsidiary was the entrepreneur and tax consultant, Mikhail Uspensky. According to Coindesk, Uspensky bought WAVES in 2018 with an ICO planned in mind, unfortunately, it did not go well which pushed him to engage in transaction validation or staking before deciding to offer it as collateral with Expobank. Legal Department Head of Expobank Tanzila Yandieva called this transaction a “precedent-setting for both the banking and legal communities." Alexander Ivanov of WAVES told Cointelegraph that their firm is not working with any other banks in developing tools using Waves open protocol with this type of crypto-backed bank loan transaction.
Russia’s business daily Kommersant has reported that the total value of the loan and the terms of the agreement, remained confidential and the tokens are currently under third-party notary custody for security purposes. The article said that the bank consulted a number of its lawyers and crypto experts before they sealed the deal with Uspensky. They reached with a decision to consider and classify Waves tokens under “other property” and not to be treated as payment tokens to make sure that this transaction will not violate new guidelines set on the first cryptocurrency law the Russian president signed last month.
Active crypto-users in the industry considered the rules imposed on cryptocurrency, in the country, as overly restrictive for it prohibits the use of the digital currency as a form of payment and barred business from advertising crypto payment options. The said law will take effect on January 2021, and Cointelegraph shared that Russians are expecting more regulatory clarity to come as part of a planned bill to pass later this year.